KUALA LUMPUR (Jan 28): Steel product manufacturer Eonmetall Group Bhd (KL:EMETALL) has proposed a private placement of up to 30% of its share base to raise RM22.14 million.

The placement of up to 91.41 million shares to third-party independent investors, based on the group’s current share base of 304.69 million, is expected to be completed by the first quarter of 2025, according the group's filing with Bursa Malaysia.

The proceeds of RM22.14 million is based on an indicative price of 26.5 sen per share, and will be used to repay borrowings and for working capital needs, including the purchase of raw materials, the group said.

At the end of December 2024, Econmetall’s total borrowings amounted to RM129.68 million. The group intends to utilise RM11.71 million raised from the exercise to repay its revolving credits.

In October last year, the group completed a private placement of 27.7 million shares — 25 million shares at 28.91 sen per share and 2.7 million shares at 29.15 sen per share — raising RM8.01 million for working capital purposes.

The group’s largest shareholder is its executive director Datuk Goh Cheng Huat, who holds a 30.34% stake via Eonmetall Corp Sdn Bhd. He also holds a 14.85% direct stake in the group.

Shares of Eonmetall was last traded at 29.5 sen, valuing the group at RM89.9 million. The counter has declined over 38% in the past year.